Sensex dips 156 points, Nifty ends below 10,800; RIL, ICICI, HDFC twin drag

May 16, 03:36 PM (IST)   

Market Closing: Benchmark indices closed sharply lower on Wednesday as uncertainty remained over the formation of government in Karnataka.
The 30-share BSE Sensex was down 156.06 points at 35,387.88 and the 50-share NSE Nifty fell 60.80 points to 10,741.10.
Reliance Industries, ICICI Bank, Cipla, GAIL, HPCL and Hindalco were under pressure while ITC, HUL, Wipro and TCS gained up to 4 percent.
Nifty Midcap index was down 14 points.
PNB, Syndicate Bank, Bank of Baroda, Century Plyboards, Morepen Labs, Adani Transmission, Reliance Communications and Shakti Pumps fell up to 16 percent.
Karnataka Bank, Indiabulls Real Estate, PTC India Financial, HEG, Delta Corp, Edelweiss Financial, NIIT, Parag Milk Foods, Hexaware, KPIT Technologies, Motilal Oswal, Jyothy Labs, V-Mart Retail, Mishra Dhatu, Apex Frozen Foods, NIIT Technologies, Jaiprakash Associates and Jaypee Infratech rallied up to 12 percent.
May 16, 03:03 PM (IST)   
Century Plyboards Q4 results: The company has reported 35 percent decline in its Q4 net profit at Rs 36 crore, while revenue was up 11.4 percent at Rs 544.1 crore.
The operating profit or EBITDA was down at Rs 83.1 crore and margin was down 180 bps at 15.3 percent.
At 15:02 hrs Century Plyboards was quoting at Rs 283.40, down Rs 22.25, or 7.28 percent on the BSE.
May 16, 02:54 PM (IST)   
Earning Reaction: Shares of Jyothy Laboratories added 4 percent on the back of strong operational performance. The company has registered 29 percent fall in its Q4 net profit at Rs 76 crore, while revenue was up 16 percent at Rs 516.8 crore.
EBITDA or operating profit was up 45.8 percent at Rs 88.4 crore and margin was up 350 bps at 17.1 percent.
May 16, 02:43 PM (IST)   
Market Update: The market remained under pressure, though it recovered more than half of losses. Buying in FMCG and select technology stocks, and recovery in banks helped the market cut losses.
Recovery in rupee and fall in crude oil prices also supported the market.
The 30-share BSE Sensex was down 106.08 points at 35,437.86 and the 50-share NSE Nifty fell 44.70 points to 10,757.20. The market breadth remained in favour of declines as about two shares fell for every share rising on the BSE.
HUL is the biggest gainer among Nifty50 stocks, rising 4 percent while ITC gained strength after quarterly earnings.
May 16, 02:35 PM (IST)   
May 16, 02:34 PM (IST)   
FMCG is one of the biggest gainers among sectoral indices, rising 1.7 percent.
May 16, 02:27 PM (IST)   
Chargesheet: The CBI filed its supplementary chargesheet against billionaire jeweller Mehul Choksi, his companies under Gitanjali Group in connection with over USD 2 billion scam in the Punjab National Bank.
In its chargesheet filed in the CBI special court, Mumbai, the agency has also charged 16 other entities, besides Choksi and his companies, on the charges of criminal conspiracy, cheating and provisions under the Prevention of Corruption Act, reports PTI.
May 16, 02:16 PM (IST)   
Results:  Aluminium major Hindalco Industries reported a decline of 25 percent (YoY) in its profits for the March quarter at Rs 377 crore. The company had posted a profit of Rs 502.5 crore for the same period of last year. 
The company’s revenue from operations rose 5.9 percent to Rs 11,681 crore from Rs 11,026 crore YoY while operating profit fell 6.6 percent to Rs 1,257.6 crore and margin contracted 140 basis points to 10.8 percent compared to year-ago.
May 16, 02:07 PM (IST)   
Earnings : Two-wheeler maker TVS Motor Company has reported a healthy growth of 30.6 percent year-on-year in profit at Rs 165.6 crore fro the quarter ended March 2018, but overall earnings barring revenue missed analyst expectations. 
Profit in the year-ago period was at Rs 126.8 crore. 
Revenue from operations met analyst expectations, growing by 40.4 percent to Rs 3,993 crore compared to Rs 2,844.5 crore YoY. 
Operating profit jumped 73.8 percent YoY to Rs 280.7 crore and margin expanded 130 basis points to 7 percent in Q4FY18. 
May 16, 02:01 PM (IST)   
Market Update: The market recovered further in afternoon after banks cut losses. The strength in FMCG and IT stocks, and the recovery in rupee & fall in oil prices also helped the market. 
The Sensex cut losses to around 50 points from 300 points in morning while the Nifty Midcap index turned in the green. 
After the Karnataka poll verdict, investors are closely watching which party will form the government.
May 16, 01:51 PM (IST)   
Earnings : ITC share price gained a percent after March quarter profit grew by 9.9 percent year-on-year to Rs 2,933 crore but revenue fell nearly 5 percent to Rs 10,587 crore. 
Operating income during the quarter increased 6.9 percent to Rs 4,144 crore and margin expanded 430 basis points to 39.1 percent compared to year-ago. 
May 16, 01:40 PM (IST)   
Buzzing : AIA Engineering share price gained over a percent after the company reported profit growth of 31.6 percent year-on-year at Rs 151.7 crore for the quarter ended March 2018. 
Revenue from operations grew by 11.3 percent year-on-year to Rs 743.9 crore and operating income increased 4.1 percent to Rs 166.6 crore, but margin contracted 230 basis points to 22.4 percent in Q4FY18. 
May 16, 01:35 PM (IST)   
Earnings: On Mobile Global's March quarter consolidated net profit shot up 62.6 percent sequentially to Rs 4.3 crore due to other income.
Revenue from operations fell 6.3 percent quarter-on-quarter to Rs 148.2 crore and operating income declined 22.9 percent to Rs 12.3 crore and margin contracted 180 basis points to 8.3 percent in Q4FY18.
May 16, 01:31 PM (IST)   
May 16, 01:20 PM (IST)   
Concession Agreement: IRB Infrastructure share price gained over a percent as IRB PS Highway Private Limited and IRB PP Project Private Limited - wholly-owned subsidiaries, have now executed concession agreement with National Highways Authority of India (NHAI) for two Hybrid Annuity Projects under NHDP Phase IV in the state of Tamil Nadu.
May 16, 01:19 PM (IST)   
Buzzing: Granules India said the US FDA has issued Establishment Inspection Report (EIR) for company’s Jeedimetla facility located at Hyderabad, Telangana.
This facility was inspected by US FDA in March 2018 and there was one (1) 483 observation during the inspection. The company has responded to the observation within the stipulated timeframe. Jeedimetla facility manufactures Active pharmaceutical ingredients (APIs) and Pharmaceutical Formulation Intermediates (PFIs), it added.
The stock price gained nearly 3 percent.
May 16, 01:11 PM (IST)   
Lemon Tree Hotels in focus: Hotel chain Lemon Tree announced the opening of its new hotel, Lemon Tree Hotel, Baddi, marking its entry into this industrial town of Himachal Pradesh.
Carnation Hotels Private Limited, the hotel management arm of Lemon Tree Hotels, will be managing this midscale hotel. The management agreement was signed by Rattan Keswani, Deputy Managing Director – Lemon Tree Hotels & Whole Time Director – Carnation Hotels, and M/s Royal Park (owner).
May 16, 01:01 PM (IST)   
Market Update: The market trimmed losses in afternoon following further recovery in banking stocks, rupee and fall in crude oil prices. After the Karnataka poll verdict, investors are closely watching which party will form the government.
The 30-share BSE Sensex was down 87.70 points at 35,456.24 and the 50-share NSE Nifty fell 38.10 points to 10,763.80 while the Nifty Midcap index recouped all its losses to trade flat.
About two shares declined for every share rising on the BSE.
May 16, 12:46 PM (IST)   
Europe Update: Shares in Europe opened mixed as investors monitor surging interest rates in the bond markets.
The pan-European Stoxx 600 was 0.1 percent up with the various sectors moving in different directions, reports CNBC.
May 16, 12:31 PM (IST) 
May 16, 12:29 PM (IST)   
Earnings : DB Corp's March quarter earnings missed analyst expectations as consolidated profit fell 11 percent year-on-year to Rs 57.1 crore and operating income dropped 12.8 percent to Rs 97.9 crore and margin contracted 440 basis points to 17.3 percent. 
May 16, 11:59 AM (IST)   
Crude Oil Update: Oil prices fell, weighed down by ample supplies despite ongoing output cuts by producer cartel OPEC and looming US sanctions against major crude exporter Iran.
Brent crude futures, the international benchmark for oil prices, were at USD 78.26 per barrel, down 0.22 percent, from their last close.
US West Texas Intermediate (WTI) crude futures were at USD 71.15 a barrel, down 0.22 percent, from their last settlement.
May 16, 11:56 AM (IST)   
Buzzing: Share price of Gammon Infrastructure Projects advanced 18.3 percent intraday as private sector lender ICICI Bank acquired nearly 18 percent stake in the company through invocation of pledged shares.
ICICI Bank has acquired 168,999,900 shares of Gammon Infrastructure through pledge invocation. Accordingly, at May 14 2018 the total equity shareholding of the bank stands at 17.94 percent," company said in a BSE filing.
Prior to acquisition, the ICICI Bank holding in the Gammon Infrastructure Projects was nil, the filing added.
May 16, 11:53 AM (IST)   
Market Update: The market is off its day's low amid rupee recovery and fall in crude oil prices. After digesting election results, investors closely watch movement of political parties for forming the government in Karnataka.
The 30-share BSE Sensex was down 171.57 points at 35,372.37 and the 50-share NSE Nifty fell 58.70 points to 10,743.20.
May 16, 11:38 AM (IST)   
Karnataka Election Results: Sources told CNN-News18 that the meeting of BJP legislative is over and Yeddyurappa is elected as BJP legislature party head.
Karnataka governor may invite BJP to form the government.
May 16, 11:32 AM (IST)   
May 16, 11:29 AM (IST)   
NCLT Case: Shares of Reliance Communications slipped nearly 18 percent intraday as NCLT admitted an insolvency petition filed by Ericsson against the company.
The National Company Law Tribunal (NCLT) has admitted an insolvency petition filed by Swedish communications equipment major Ericsson against Anil Ambani-run Reliance Communications and two of its subsidiaries seeking to recover Rs 1,150 crore.
Ericsson had signed a seven-year deal in 2014 to operate and manage RCom's nationwide telecom network but has not been paid the bill.
Last September, the Swedish company had filed a petition in the NCLT's Mumbai bench seeking liquidation of the telecom operator to recover Rs 1,150 crore that RCom owes it.
The tribunal admitted the petition which could potentially result in delaying RCom's plans to sell assets to lighten its debt load.
May 16, 11:20 AM (IST)   
Buzzing: Shares of Vivimed Labs added 2.3 percent intraday as the company acquired Hungarian company, SONEAS.
Vivimed Labs Spain S.L, the parent of UQUIFA S.A, has signed definitive agreements to facilitate the acquisition of SONEAS, company said in release.
The business has been acquired from Lochlomond and Euroventures which are both based out of Hungary.
The acquisition broadens UQUIFA's market offering in the CDMO space by enhancing its ability to now undertake preclinical, phase I, II and III NCE project development.
May 16, 11:18 AM (IST)   
Market Update: The uncertainty over formation of government in Karnataka, asset quality concerns, rupee depreciation and higher crude oil prices dented market sentiment as the Sensex was down 195.43 points at 35,348.51 and the Nifty fell 70.90 points to 10,731.
The Nifty Midcap index trimmed losses to half a percent. About three shares declined for every share rising on the BSE.
ICICI Bank is the biggest loser among Nifty50 stocks, falling 3 percent followed by Reliance Industries, IOC, SBI, L&T, HPCL and UltraTech Cement.
May 16, 11:11 AM (IST)   
May 16, 11:01 AM (IST)
Drug Launch: Glenmark Pharmaceuticals Europe has launched a generic version of Seretide Accuhaler, used to treat asthma, in Denmark.
The product was developed by Celon Pharma and Glenmark has marketing and distribution rights for the product across 15 European countries.
"This is Glenmark's first inhaled respiratory product launch in Europe. Glenmark is the first generic company to receive regulatory approval for substitution in Denmark for its generic of Seretide Accuhaler," Glenmark Pharmaceuticals Ltd said in a BSE filing.
Glenmark had entered into a strategic development and licensing agreement with Celon Pharma S.A. to develop and market a generic version of GlaxoSmithKline's Seretide Accuhaler product - Fluticasone/Salmeterol dry powder inhaler in 15 European countries, reports PTI.
May 16, 10:18 AM (IST)
RBI Intervention: The Reserve Bank of India (RBI) likely intervened heavily in the foreign exchange market right from the start of trade on Wednesday to stem any fall in the rupee, three dealers said.
"It looks like RBI is in a mood today," said a senior dealer at a state-run bank, estimating that within the first 10 minutes the Reserve Bank of India might have sold USD 300 million to USD 400 million proactively to prevent any sharp fall in the rupee.
The rupee was trading at 67.8775 to the dollar compared with its previous close of 68.15 as against expectation of the rupee weakening early on itself on firm crude and widening India trade deficit, reports Reuters.
May 16, 10:16 AM (IST)
May 16, 10:11 AM (IST)
Buzzing: Share price of Cyient gained 3.5 percent intraday as the company signed definitive agreement to acquire the remaining stake in its subsidiary company.
The company signed definitive agreement to acquire the remaining 49 percent stake in its subsidiary Cyient Insights to take the overall stake to 100 percent.
The consideration is paid in cash and said acquisition is likely to close in seven days and is subject to customary closing conditions.
May 16, 10:04 AM (IST)
Earnings Reaction: Public sector lender Syndicate Bank share price dropped nearly 6 percent after it reported a net loss of Rs 2,195.12 crore in the last quarter ended March 31, due to high bad loans that required higher provisioning.
The bank had posted a net profit of Rs 103.84 crore in the corresponding January-March quarter of 2016-17. In December quarter, there was a net loss of Rs 869.77 crore.
The bank's provisioning requirement for bad assets were raised by nearly three times during the March quarter to Rs 3,544.68 crore as against Rs 1,192.54 crore in the same period previous fiscal, it said in a regulatory filing.
May 16, 9:57 AM (IST)
Market Update: The market extended losses, with the Sensex falling more than 250 points on correction in banks stocks after disappointing earnings by PNB.
The Nifty Bank index is down more than 300 points while the Nifty Midcap slipped a percent.
Technology stocks outperformed as the rupee hit 68 against the US dollar, though RBI intervention helped it to recover sharply from lows of 68.13 a dollar.
The 30-share BSE Sensex was down 281.37 points at 35,262.57 and the 50-share NSE Nifty fell 92.90 points to 10,709.
About three shares declined for every share rising on the BSE.
May 16, 9:53 AM (IST)
Japanese Economy Shrinks: Japan's economy shrank for the first time in two years in the first quarter of the year amid weak consumption, official data showed.
The world's third-largest economy contracted by 0.2 percent quarter-on-quarter in the January-March period, compared with growth of 0.1 percent at the end of 2017, the Cabinet Office said.
Private consumption was flat after an uptick of 0.2 percent in the final quarter of last year. Private residential investment plunged another 2.1 percent after a 2.7 percent fall in the previous quarter.
May 16, 9:40 AM (IST)
Market Update: Benchmark indices extended losses in morning, with the Sensex falling 238.81 points to 35,305.13 and the Nifty declining 77.80 points to 10,724.10.
More than two shares declined for every share rising on the BSE.
May 16, 9:37 AM (IST)
Buzzing: Shares of Punjab National Bank (PNB) touched 52-week low of Rs 76.10, falling 12 percent in the early trade post weak numbers posted by the company for the quarter ended March 2018.
The company has reported a net loss of Rs 13,416.91 crore for the fourth quarter ending March 2018.
The profit was dragged by a three-fold surge in provisions towards bad loans, which was taken upfront during the quarter.
In the same quarter a year ago, the bank had turned around due to write-back in pension provisions to report a profit of Rs 261.9 crore as against a massive loss of Rs 5,367.1 crore in March-end quarter 2016.
Total hit to PNB on account of the Nirav Modi-scam is Rs 14,356.84 crore. This includes unauthorised letters of undertaking and domestic loan.
Due to high provisions, the capital adequacy ratio (CAR) dipped to 9.2 percent, below the minimum of 11.5 percent laid down by Basel-III norms.
The banks total net worth fell below the amount of non-performing loans.
May 16, 9:34 AM (IST)
Results Today: ITC, Tata Steel, Hindalco, TVS Motor, Aarti Drugs, NIIT, Alembic Pharma, Balkrishna Paper Mills, Brigade Enterprises, Welspun India, Century Plyboards, DB Corp and Praj Industries will announce their quarterly earnings today.
May 16, 9:26 AM (IST)
Buzzing: Indiabulls Real Estate share price gained more than 6 percent ahead of board meeting to consider share buyback proposal.
The real estate company informed exchanges that a meeting of the board of directors will be held on May 18 to consider the proposal of buyback of equity shares.
It further said in terms of SEBI regulations and Code of Conduct for Prevention of Insider Trading of the company, the trading window for dealing in securities of the company has been closed and will remain closed till May 20, 2018.
May 16, 9:20 AM (IST)
Market Opening: Benchmark indices opened sharply lower, following weak trend in global stocks and uncertainty over formation of government in Karnataka.
The 30-share BSE Sensex was down 166.25 points at 35,377.69 and the 50-share NSE Nifty declined 54.20 points to 10,747.70.
Nifty Bank fell 184 points as PNB plunged 10 percent.
Lupin, Power Grid, Tata Steel, Tata Motors, TCS and Tech Mahindra were early gainers.
Titan Company, Bajaj Finserv, ICICI Bank, Axis Bank, Cipla, HPCL and SBI were under pressure.
Nifty Midcap was down 83 points. Reliance Communications, Jaypee Infratech, MRPL, Shakti Pumps, PI Industries, Syndicate Bank, Allahabad Bank, Karnataka Bank, Bajaj Hindusthan and IDBI Bank were down up to 8 percent.
Endurance, Crompton Consumer, Indiabulls Real Estate, Bhushan Steel, IRB Infrastructure and Ashok Leyland gained up to 7 percent.
May 16, 9:15 AM (IST)
Rupee Update: The Indian rupee recovered sharply after opening 7 paise lower, trading higher by 18 paise at 67.89 against the US dollar.
May 16, 9:14 AM (IST)
Market Outlook: Abhinav Gupta , President, Capital Markets, Share India Securities said index seems to be at the cross roads as Tuesday's intraday reversal could be beginning of further corrective action. Besides, weaker global cues and sluggish rupee added to the subdued sentiments on the bourses. Brace up for more volatility ahead. Below 10,780, Nifty would test sup of 10,720-10,680. Resistance is at 10,880.
May 16, 9:12 AM (IST)
Rupee Update: The Indian rupee slipped further on Wednesday. It has opened lower by 7 paise at 68.14 per dollar.
In the previous session rupee ended at 68.07 (down 56 paise from Monday's close), a lowest level since January 2017 post BJP fell short of clear majority in Karnataka.
Anand James, Chief Market Strategist at Geojit Financial Services said, "With food and fuel prices pushing CPI higher, rupee’s weakness has hastened, sinking to 16-month low. Political uncertainty after the Karnataka elections also did not help."
"RBI’s recent minutes had also revealed a hawkish bias, and the firm inflation now agrees with the same. To this end, oil’s trajectory for the rest of the month and trade balance figures for April would be crucial as market weighs RBI’s take on the rates," he added.
May 16, 9:10 AM (IST)
PNB's NPAs are now more than its net worth: The country’s second-largest state-owned lender Punjab National Bank achieved a dubious distinction. It became the first major bank in the country whose net worth fell below the amount of non-performing loans on its books.
As on March 31, the bank had net non-performing loans totaling over Rs 48,000 crore on its books, against a net worth of around Rs 41,000 crore.
To be sure, PNB is not the first bank in the country to have witnessed this kind of misfortune. Smaller public sector banks like Oriental Bank of Commerce, Dena Bank, Union Bank of India and UCO Bank, among others, have already crossed that bridge.
But the fact that a lender the size of PNB, which has loans of around Rs 4.33 lakh crore on its books, has deteriorated to such an extent that it has more bad loans than it is worth is a point of concern.
May 16, 9:06 AM (IST)
Markets@Moneycontrol: Nifty likely to open lower; ITC, JSW Steel, Tata Steel to be in focus
The market is likely to open sharply lower on Wednesday, tracking global weakness. The Nifty50 closed down 4.70 points at 10,801.90 on Tuesday.
May 16, 9:06 AM (IST)
May 16, 9:04 AM (IST)
Moneycontrol News
Benchmark indices were mildly lower in pre-opening trade, tracking weakness in global stocks and following trend in SGX Nifty futures.
The 30-share BSE Sensex was down 78.53 points at 35,465.41 and the 50-share NSE Nifty fell 35.70 points to 10,766.20.
Eicher Motors, Allahabad Bank, PNB and Andhra Bank were under pressure.
The SGX Nifty futures indicated weak opening for the market as it was trading down 67.50 points at 10,758 on the Singaporean Stock Exchange.
Most Asian stocks traded lower following a down day for Wall Street as the US 10-year Treasury yield rose to 3.09 percent overnight.
US stocks dropped sharply on Tuesday after Home Depot reported quarterly sales that fell short of Wall Street's expectations and interest rates breached new highs, reports CNBC.
The Dow Jones industrial average fell 193 points to close at 24,706.41 while the S&P 500 declined 0.7 percent to 2,711.45 and the Nasdaq composite dropped 0.8 percent to 7,351.63.